R
eclassifying their
portfolios. Launching
the right kind of loyalty
programmes. Adding more
resources in development and
sales. These are busy days for
CEOs of independent hotel
groups who – far from being
cowed by competition from the
home-sharing economy or a slew
of new soft brands launched
by international hotel chains –
are showing they love a good
challenge. Have a look:
PREFERRED HOTELS
& RESORTS
Preferred is 50 years old this year,
but shows no signs of a mid-life
crisis. A new female leadership
will have none of it anyway.
In March, the first non-Ueber-
roth president, Michelle Woodley,
was named, along with a new
chief marketing officer, Kristie
Goshow, and a new EVP corporate
communications & PR, Caroline
Michaud. The move was designed
to harness the skills sets in key
functional areas of experts outside
the family, said CEO Lindsey
Ueberroth.
Preferred ended 2017 with
a 22 per cent year-on-year
increase in reservations revenue
to US$1.35 billion, and the
addition of 103 new properties,
validating its rebranding in 2015,
where each of its 650+ member
hotels was aligned with one of
five collections: Legend, LVX,
Lifestyle, Connect and Preferred
Residences. The idea of the
exercise, said Ueberroth, was to
provide a more intuitive way
for consumers to search and
book their lodging based on the
type of luxury experience they
are seeking, rather than by the
‘brand/hotel type’ way that hard
brands had taught them to do.
It has paid off, not just in the
increased revenue and bigger
membership, but by only serving
Above The
Fullerton Hotel,
a Preferred
member
In fact,
most of us
will receive
benefits
before we
have actually
demonstrated
any loyalty
to a brand...
programmes
must work
significantly
harder.
Lindsey Ueberroth
CEO, Preferred
Hotels & Resorts
to enhance the large degree of
repetitive, indistinguishable
products hotel chains have in their
network.
“The process of reclassification
allows traditional independent
hotel groups to organise
themselves into meaningful
collections that make it easier
for a consumer to understand
their diverse portfolio without
compromising on individual
hotel personalities,” Ueberroth
told TTG Asia Luxury. “While it is
a key advantage to offer a great
deal of variety in accommodation
choices, authentic experiences and
unique global destinations, we
must also be easy to sell and easy
to buy, regardless of the member’s
reason for travelling. Therefore,
transparency in pricing and
breadth of information on these
hotel choices are paramount.”
To support the differentiation of
brand collections and the audience
they resonate with, its loyalty
programme I Prefer was enhanced
through the launch of a mobile
app and exclusive member rates.
“These new offerings fuelled an
84 per cent increase in stays, more
than 50,000 downloads for the I
Prefer mobile app (available on iOS
and Android), and more than US$8
million in member rate reservations
revenue for participating hotels.
To-date, I Prefer has more than 2.5
million members worldwide,”
said Ueberroth.
Plans are to continue enhancing
the benefits and offers for I Prefer
members, and to further strengthen
engagement with them. At press
time, details are under wraps
but Ueberroth emphasised two
key phrases, “true loyalty” and
“gratitude”.
She said: “The consumer has
been educated to expect instant
gratification due to the proliferation
of rewards programmes in every
aspect of their daily lives, from
supermarkets to healthcare.
In fact, most of us will receive
benefits before we have actually
demonstrated any loyalty to a
brand.
“Consequently, loyalty
programmes must work
significantly harder to deliver on
their true intent – brand loyalty –
especially in the hotel space where
the traditional ‘earn and burn
points’ model isn’t as effective as it
once was. Loyalty is fast becoming
TTG Asia luxury | May 2018 57